The Philippines is at a fork in the road. Despite good results on the growth front, trends observed in trade competitiveness, Global Value Chain (GVC) integration and product space evolution, send worrisome signals. The country has solid fundamentals and remarkable human assets to leapfrog into the 4th Industrial Revolution – where the distinction between goods and services have become obsolete. Yet it does not get the most out of this growth, especially with regards to long-term development prospects. In order to do so, the government will have to make the right policy choices.
Private Sector Development
เจ้าของธุรกิจไทยในเชียงใหม่อาจเปิดรีสอร์ทเพื่อบริการลูกค้าในประเทศรวมถึงนักท่องเที่ยว เขาอาจจะใช้เวลาสองเดือนเพื่อจัดตั้งธุรกิจหลังจากที่เขาหาสถานที่ พนักงานและจดทะเบียนจัดตั้งธุรกิจได้แล้ว โดยรวมแล้วการดำเนินธุรกิจเป็นไปอย่างราบรื่น
ในขณะเดียวกัน ชาวต่างชาติที่อาศัยอยู่ในเวียดนามและสนใจที่จะมาลงทุนเปิดร้านอาหารโดยมีงบลงทุน 3 ล้านบาทในไทยก็มีประสบการณ์ที่ต่างออกไป เธอพบว่าการจัดตั้งธุรกิจทำได้ไม่ง่ายนัก เว็บไซต์ข้อมูลส่วนใหญ่เป็นภาษาไทย และมีเรื่องเอกสารประกอบการจัดตั้งธุรกิจที่ทำให้เธอกังวลใจ การได้ใบอนุญาตทำงานและการได้ใบอนุญาตประกอบธุรกิจก็ใช้เวลานานกว่าที่คาดไว้
A Thai business owner in Chiang Mai might open a small resort serving local people as well as tourists. It would probably take him about two months to set up his business after finding the location, staff and getting the company registered. He would find it reasonably easy to start his business.
At the same time, a foreign investor living in Vietnam and considering whether to invest 3 million baht in Thailand to start a restaurant might have a different experience. She would likely find the process a bit complex and challenging. Most websites with the relevant information are written in Thai, the paperwork involved in registering a company can be pretty daunting for foreigners, and getting work permits and a business license can take longer than expected.
For much of its post-independence period, Myanmar’s once vibrant entrepreneurialism and private sector was stifled by economic isolation, state control, and a system which promoted crony capitalism in the form of preferential access to markets and goods, especially in the exploitation of natural resources. Reflecting this legacy, private sector firms are still burdened with onerous regulations and high costs, dragging down their competitiveness and reducing growth prospects.
Myanmar is undergoing a historic transition. After decades of armed conflict and economic stagnation, the country is beginning to make important strides toward realizing its potential and the aspirations of its people.
Our engagement in Myanmar started more than 60 years ago when it became a member of the World Bank, soon after gaining independence from British rule.
Back in 1955, the Bank’s first economic report stated: “the lack of security remains a disrupting influence on the economic life of the country” while “the long term economic potentials are bright” on account of its moderate population growth and abundant natural resources. It also noted the importance of “encouraging private sector enterprise to improve the standard of living of the people”— these are topics that continue to resonate in today’s development discourse.
In the early 1950s, Myanmar’s GDP per-capita was comparable to that of Thailand, Korea, and Indonesia. Like others in the region, Myanmar was coming out from colonial rule and a period of struggle. Sixty years on, Myanmar has a per capita GDP just above $1,100, less than one third the average for ASEAN countries and one of the lowest in East Asia.
The good news is that Myanmar has begun the catch up process. Major political and economic reforms since 2011 have increased civil liberties, reduced armed conflict, and removed constraints to trade and private enterprise that long held back the economy.
|A challenge for Chinese businesses is to re-capture the vast domestic market owing to the recent food scares that have seriously undermined the domestic brands.|
After several high-profile food safety incidents, according to one recent survey, around 64% of Chinese consider food safety as the number one priority that affects their daily lives and requires immediate action by the government.
The Chinese government is taking these concerns very seriously and has launched important reforms in its system of food control. It promulgated a new Food Safety Law in 2009, and created a new food safety authority in 2013 to deal with these issues. These reforms are now rolling out to provincial and local levels. These reforms will eventually affect more than one million state officials, restructure more than a dozen government ministries, and revise more than 5,000 regulations. The reforms will result in a complete overhaul of the food control system and introduction of new global best practice policies for food safety.
2013 has been a year of adjustment for Indonesia’s economy. In the recent edition of the Indonesia Economic Quarterly report, the flagship publication of the World Bank Indonesia office, we asked the questions: what are the drivers of this adjustment and how should policy respond?
The Yangon Circular Railway is the local commuter rail network in Yangon, Myanmar. In this recording, World Bank Country Manager Kanthan Shankar boards the train on a three-hour ride around the city. "You see a panorama of life unfolding before you and you feel a part of the picture," he says, reflecting on the daily lives of the people in Yangon, "There's a huge opportunity for commerce and private sector growth. Yangon and Myanmar is lucky that it has basic infrastructure in place. It's a matter of rehabilitating these and aiming for a smoother ride to pave the way for commerce,"